Wells Fargo Lends $107M to Florida Investment Firm for Series of Multifamily Deals
By Danielle Balbi April 1, 2016 12:02 pm
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Tampa, Fla.-based Blue Rock Premier Properties received a total of $107 million in debt from Wells Fargo’s multifamily capital group across three separate transactions, Commercial Observer has learned.
The financing from the bank was used for the acquisition of 1,572 multifamily units in Jacksonville, Fla., and for the rehabilitation of 238 apartments in Winter Park, Fla.
“The Wells Fargo multifamily capital team is optimistic about our continued long-term relationship with Blue Rock Partners,” Horatio Jones, the director of the Florida region for Wells Fargo multifamily capital, said in prepared remarks. “Randy Ferreira’s Blue Rock team has proven to be a knowledgeable operator that is attuned to the submarket and specific dynamics impacting multifamily performance in both Jacksonville and Winter Park. Wells Fargo intends to remain an active lender in each of the markets throughout 2016.”
Specifically, Blue Rock assumed a $54.3 million loan for the acquisition of a three-property portfolio in Jacksonville, including Madison at Bay Pointe, Madison at Savannah Oaks and Madison at Spring Woods. The firm, in partnership with property management company Konover South, acquired the housing complexes for a total of $64.8 million in February and will invest another $8.5 million in upgrades to units and communal areas, according to REBusiness Online.
Wells Fargo also provided Blue Rock with a $32.2 million mortgage to fund its purchase of Landmark at Sage Commons and Landmark at Hampshire Place in Jacksonville, with a combined 532 units. According to Jacksonville Business Journal, the firm scooped up the two-property portfolio for $48 million. The San Francisco-based bank also lent $16.6 million for the acquisition of the simple interest and renovation of Hunter’s Ridge Apartments in Winter Park.
“We have enjoyed our relationship with the Wells Fargo team and look forward to many other deals throughout the state together,” Randy Ferreira, Blue Rock’s co-managing partner, said in a statement. “Thus far the Wells team has executed as proposed in an efficient professional manner and have been an added strength to our acquisition process.”
